The level of digital transformation affecting the competitiveness of banks

Abstract

Te article examines the competitiveness of Ukrainian banks influenced by economy digitalization, the dynamic spread of electronic payments and e-commerce, as well as innovative technologies aimed at providing digital services. When shifting to an Online Platform business model, a bank can expand its range of banking products, attract more customers, thereby forming a competition policy and gaining competitive advantages. Te paper aims to assess the digitalization level affecting the general competitiveness of banks and its components based on Ukrainian banks. For this purpose, the following methods were used: standardized input statistical indicators, comparison and ranking, a cluster analysis, and a regression and correlation analysis. Te cluster analysis confrmed the current role of digitalization as a competition driver that determines the competitive advantages of banks and creates additional opportunities to expand the customer base and the range of services. Te correlation and regression dependence of the competitive position identifed by the activity indicators of certain banks on the level of competitive digitalization confrmed a close direct impact on the competitive position of personal deposits arising from the development of digital banking technology; the pre-tax income, profles of assets and personal loans, and corporate deposits are subject to a signifcant direct impact, while the weakest direct impact determines corporate loans. Te foregoing substantiates the feasibility of large-scale introduction of innovative digital technologies by banks to maintain competitive positions in the banking sector of the economy. Applying the proposed approach based on certain regression equations, managers of Ukrainian banks will be able to assess the efficiency and make appropriate decisions concerning investing in digital tools and services.